TSMC begins volume production of CMOS image sensors

TSMC, one of the biggest IC foundries
in the world announced volume production of CMOS sensors. "Using
TSMC as its IC foundry, OmniVision offers the OV7600 series of completely
programmable digital imaging devices with a VGA (video graphic array)
resolution image array size of 640x480 pixels. The OV7600 combines the
sensor array with an on-chip A/D converter that delivers 8-bit and 16-bit
parallel digital output."

Lower Power, Less Expensive Alternative to CCDs Features
Color Filter and Microlens for Single-Chip Cameras

HSIN-CHU, Taiwan--(BUSINESS WIRE)--May
15, 2000-- Responding to fast-growing market opportunities, Taiwan Semiconductor
Manufacturing Company (NYSE: TSM - news) today announced that it is the
first foundry to produce 0.35-micron CMOS image sensor technology in volume.
TSMC's image sensor technology enables system-on-chip (SOC) functionality
for a broad range of applications, including digital video cameras for
Internet-enabled PCs. TSMC is currently producing CMOS image sensors at
an output rate of more than 5,000 six-inch wafers per month.

Spurred by volume pricing and rapid chip
integration, semiconductor revenues for PC cameras are projected to grow
five-fold by 2002, and by 2003 should reach $1 billion in sales, according
to market research firm Cahners In-Stat Group. By 2002, Cahners In-Stat
forecasts, most PC cameras will be based on a single-chip solution, thereby
reducing system size and manufacturing cost. Other CMOS image sensor-based
applications include digital television, toys, security systems, and small
cameras embedded in laptop PCs and hand-held devices.

One TSMC customer at the forefront of
image sensor technology is OmniVision Technologies, Inc. of Sunnyvale,
Calif., which is a leading supplier of advanced, single-chip CMOS cameras-on-a-chip
for a broad range of video-based applications. Using TSMC as its IC foundry,
OmniVision offers the OV7600 series of completely programmable digital
imaging devices with a VGA (video graphic array) resolution image array
size of 640x480 pixels. The OV7600 combines the sensor array with an on-chip
A/D converter that delivers 8-bit and 16-bit parallel digital output.

TSMC manufactures image sensors with
a red-green-blue color filter, offering high performance and high quality
with low cost.

"The real world is color, not black-and-white,'' Chen
said, "and the integrated color filter allows selective pass-through
of light so that the silicon actually `sees' and processes all the colors
in the spectrum. In fact, we have a procedure that fine-tunes the color
process, making it very adaptive and attractive.''

A microlens sits on top of the color filter
to enhance optical sensitivity. With a camcorder, for example, the microlens
allows the user to pick up a good quality image in low light.

"The bottom line,'' Chen said, "is
that such optical flexibility can command a better selling price for the
end-product, such as today's proliferating PC cameras.''

PROCESS ROADMAP

Image sensors are currently in volume
production using TSMC's 0.35-micron, 0.5-micron, 0.6-micron and 0.8-micron
process technologies. TSMC's process roadmap calls for migration to a
0.25-micron process at the end of 2000 and then to a 0.18-micron process
by the end of 2001.

The 0.35-micron process is suitable for
million-pixel products, and is particularly applicable to DSC (digital
still cameras). Image processes at TSMC are fully compatible with the
company's generic processes and easy to integrate with existing libraries
and IP.